Tea Prices Fall Despite Higher Production Hopes
- Editor
- February 6, 2026
- Business News
- Ceylon Tea
- 0 Comments
Sri Lanka’s tea prices declined in January 2026, even as authorities expressed confidence in stronger production and export performance this year. According to Forbes & Walker Research, the National Sales Average fell both month-on-month and year-on-year, with all tea elevations recording negative variances in dollar terms.
Medium and Low Grown teas posted the sharpest declines, while High Grown teas showed only marginal resilience in rupee terms. The downturn follows production disruptions caused by cyclone Ditwah, which resulted in the loss of over one million kilograms of tea in December 2025.
Despite these challenges, the Sri Lanka Tea Board expects production to reach up to 300 million kilograms in 2026, supported by fertiliser subsidies and favourable weather. Export volumes rose in 2025, but earnings growth remained modest, highlighting continued pressure on realised prices amid volatile global conditions.
